Annuities are retirement products that give guaranteed lifetime income for less risk than many other products out there. So it makes sense that women and middle class Americans are purchasing annuities more than anyone else. Michelle Samaad of the Credit Union Times wrote “Middle Class, Women Favor Annuities” based on recently released information from a Gallup survey. Non-qualified annuities seem to be the retirement products of choice for both women and households with income below $100,000. Out of the 1,003 annuity owners polled, 80% of them were considered middle class, while only 4% had a household income greater than $200,000.
The average annuity owner was found to be a 70-year-old female and almost 60% of the non-qualified annuity owners were women. The majority (69%) of the annuity owners are already retired and their average age is 70. Both of those numbers increased between the 2005 and 2009 surveys from 58% and age 66, respectively. The main reason that annuity owners cited for purchasing the products was the security it provides in case they or their spouses live beyond their life expectancy. Almost 80% say that their annuities help them feel comfortable about their retirement during difficult financial times.